All the little stuff adds up.

Have you noticed how much money you spend on the little stuff? It's easy to keep track of major purchases like a new laptop, or LCD monitor, but little things like paper, stamps, and envelopes can really add up quickly.

I'm probably going to need a new printer in the near future. The one I have is fine right now but it's a couple of years old. As a writer I give printers quite a work out. That's how I go through so much paper. What I didn't realize is how many inkjet cartridges I go through. Sometimes I think the companies who manufacture the printers don't make their money by selling printers but by selling the ink cartridges.

Stamps are another "little" expense. Sending out query letters to freelance articles requires a stamp on the envelope of course, but also another stamp for the response envelope inside. For those of you not familiar with queries, you write a short description of the article you'd like to write, the reasons why you're the best person to write the article and enclose a self addressed stamped envelope (SASE) for the editor to use to give you their response.

Dee

If you have a reasonable credit rating you probably receive a number of credit card offers. Here are a few tips.

Compare apples to apples when an offer comes in. A lower rate interest or even 0% interest may sound like a great deal, just make sure that after an initial time period the interest rate won't go higher than your current card.

Make sure you have enough credit but not too much. Even if the credit is unused it can count against you when you want to buy a new car, refinance your mortgage, or buy a house. The lender thinks that even if the credit isn't used now, you could use it in the future.

Don't get confused by all the bells and whistles. Credit card offers can have different interest rates, membership fees, late fees, cash advance fees and separate cash advance interest rates and usage fees. Decide what you will be using the card for and how often, then decide which card is the best for you.

Credit is not the same thing as cash in the bank. Just because you have an unused credit line of several thousand dollars don't think you have to use it. Save your credit for when you need it.

Dee

A Credit Card is More than a Convenience

It can be a financial management tool as well. Most of us take our credit cards as a daily part of life. We whip them out to pay for gas, lunch and even groceries. A credit card can help you differentiate between personal travel expenses and business travel. Many cards provide year end reports that group different types of expenses together. It can be a bit of a shock to find out you spent $3,500 on stamps, for example. But that kind of knowledge is helpful when you're examining your profit and loss statement for areas you can trim.

A credit card can also make sure you track every expense. It's easy to pay cash and then forget to include that expense. The card tracks the expenses and provides a paper trail as well.

For some expenses like car rentals and hotels it's mandatory to have a credit card.

A credit card can help with emergency situations and unforeseen expenses. It can also help balance out expenses that you pay once a year, allowing you to break the payments into monthly more easily managed payments. A credit card can smooth out cyclical or seasonal expenses as well. If you know that you have very busy sales months in the summer but won't get paid until September, a credit card can help your business obtain the necessary products, materials and inventory without using vital cash resources.

Credit cards have a bit of a down side, it's all too easy to pay for things with your card and run up a tidy bill. It can also be tempting to use the business card to pay for personal items.

What type of credit card you acquire is dependent on your credit profile. If you don't have established credit it's doubtful you can obtain a card with a huge credit limit. If you pay off your credit card every month you should probably look for one that offers rewards. However if you know you're going to carry a balance from month to month, at least part of the year, then a low interest rate is more important than a rewards program.

As you maintain a good payment history, the limit will increase. Prompt payment on your credit card account also demonstrates a responsible attitude and that can help you get bank financing in the future.

Dee

Sometimes you have just got to have cash. Credit cards are great for those everyday purchases but what if you need cash and you need it in a hurry?

You could ask for a cash advance on your credit card, but some cards have a limit on how much and how often you can get an advance. And of course you pay a processing fee, cash advance fee and interest fees.

Pawning valuables is another alternative. You'll get the cash quickly but you won't have the use of whatever valuable you're pawning and you'll only get less than 10% of the value of the asset. If you have a watch that retails at $5,000, you may only get $150 in cash. If you don't pay pack the $150.00 plus interest in the time period allowed, usually 90 days, you forfeit the watch.

Another alternative is a payday advance loan. This works if you have a steady job with a reliable paycheck. There's a quick online application process and you do have to pay interest and sometimes a small processing fee. The money is transferred to your bank account almost immediately. When you get your paycheck you pay the advance back.

As with any loan or credit option use it wisely.

Dee

Debt can be a lifesaver in an emergency situation but many people are drowning in debt. Unfortunately some of us think that an available balance on a credit card is the same thing as cash in the bank. If there's enough credit to go on a cruise, buy those expensive shoes, or go out to an elegant restaurant,well why not, we all deserve it.

Breaking down a $6,999.99 set of new living room furniture into easy monthly payments of $249.00 makes it easier to swallow. And what about that new car you've had your eye on? Never mind the price tag of over $20,000, it's only $389.00 a month. And suddenly you're facing a credit crisis. Your paycheck will only stretch so far and those "easy" monthly payments are pushing you under water.

Don't try to ignore the problem. Recognize there is a problem and that a
debt management program may be your solution. Debt management is simply a way to take all those credit card balances, personal loans, monthly payments and refinance the total with a new loan and often lower monthly payment.

It's difficult to do this by yourself. Often your creditors won't take your efforts seriously and that's where a debt management company comes in. The company can negotiate with all your creditors develop a new loan and debt repayment schedule for you.

It's something to consider if you're drowning in debt.